Large companies ‘killing’ small Kiwi businesses
Large companies are ‘‘killing’’ New Zealand’s small businesses by making them wait too long for payments, accounting software company MYOB says.
‘‘You hear of some businesses waiting 60, 90, 120 days or more to get paid for work done. It’s not good enough,’’ MYOB NZ general manager Carolyn Luey said.
Pressure is mounting on large companies to make life easier for small businesses who have been described by advocate Small Business Voice as the ‘‘lifeblood of the economy’’. Critics say New Zealand ought to have a voluntary code of conduct under which large companies would pledge to pay their bills in 30 days’ time or less.
Figures supplied by software accounting firm Xero show that in the last six months, the country’s largest companies had racked up $1.7 billion in overdue invoices.
New Zealand’s largest firm Fonterra, the most high profile name involved, can now take between 60 and 90 days to pay a small business.
The chief executive of Small Business Voice, Max Whitehead, said small businesses accounted for 40 per cent of GDP.
‘‘They are the lifeblood of the economy, they are the mums and dads, the Kiwi battlers.’’ Withholding payment from them was ‘‘almost theft’’.
‘‘Fonterra should know better, they are a national icon. It’s disgraceful,’’ Whitehead said.
New Zealand’s largest firm Fonterra can now take between 60 and 90 days to pay a small business.